Abu Dhabi Commercial Bank (ADCB) has bought back and re-issued about Dh1 billion worth of bonds that were to mature in November, people close to the deal told Emirates Business. The bank declined to confirm or deny the news.
The Abu Dhabi-based lender issued Dh2.1bn of bonds in 2007 with a maturity of two years and a coupon rate of 52 basis points above the Emirates Inter-bank Offer rate, or Eibor. Standard Chartered bank was the sole manager of the issue.
Instead of making a fresh offering to raise more cash, ADCB has opted to extend the maturity of the "2007 bond" by buying back half the paper worth about Dh1bn and issuing fresh debt maturing in 2011. The spread this time is about four times higher at 250 basis points above Eibor, in line with the market trend, the source said.
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